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is it valid to say that this was an external promotion?

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On my business school application, it asks why I left previous firms.

I left my very first firm to join a relatively niche company and I was told (possibly lied to by the HR people of the firm) that it only hires experienced level people.
I thought with the 33% increase in salary it was a step up from where I was and an opportunity to take on more responsibilities. Over time, the company became more well known in the industry and it eventually decided to make this position title the bottom rung.
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